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Toronto, Vancouver and Calgary top the Charts; how does your city stack up?
Toronto, December 8, 2014 – If you want the prestige of renting the most expensive office space in your province, it will cost $41 per square foot more to do it in Toronto than in Quebec City.
JLL's Most Expensive Streets for Office Space report ranks Canadian cities by their highest office asking rents. Landing in the top three average asking rents this year are: Toronto at $68.52 per square foot; 8th Avenue SW, Calgary at $59.06 per square foot; and Burrard Street, Vancouver at $ 58.87 per square foot. Click here to download the infographic.
"The most significant trend that we are seeing across major markets is that there are a large number of new developments underway", said Brett Miller, President of JLL Canada. "Although we have only seen minor changes to the top market rents thus far in 2014, we anticipate that as the new inventory comes to market, overall rents will decrease in the older class "A" stock whilst headline rents in new developments may raise the top line rents."
There continues to be clear desire from many companies to pay a premium for the most expensive spaces. The most expensive streets fall into financial, retail or government hubs that are highly prominent and competition to get into those spaces is growing.
The Top Most Expensive Streets for Office Space in Canada (by average asking rents):
1. Bay Street, Toronto, ON, $68.52 p.s.f.Bay Street held strong in first place for the fourth year running. It features headquarters of major Canadian Banks and is also home to many investment banks, accounting and law firms. Brookfield Place, at 161 Bay St., continues to command the highest office rents of any building in Canada, maintaining Bay Street's status as most expensive street.
2. 8th Avenue SW, Calgary, AB, $59.06 p.s.f.8th Avenue SW hosts the highest average gross office rents in Calgary again. Large vacancies and availabilities along this corridor typically experience significant activity and command market leading rates. Large oil and gas companies have historically clustered around the central business district, in this area.
3. Burrard Street, Vancouver, BC, $58.87 p.s.fBurrard Street has dropped to the third place position, despite a slight increase in average asking rent from $58.47 in 2013 to $58.87 this year. Approximately 18.3 percent of downtown Class A office supply is located on Burrard Street between West Georgia Street and Canada Place. Vacancy in these six notable buildings currently sits at 1.6 percent, which justifies why this prominent location commands some of the highest rental rates in the City despite the impending influx of new supply that is putting downward pressure on rents throughout the Central Business District. 4. Albert Street, Ottawa, ON, $52.10 p.s.f.Albert Street remained in 4th position with average rents decreasing slightly from $53.40 p.s.f .to $52.10 p.s.f. Albert Street is mainly home to government related office towers, including numerous foreign embassies, and a few of the largest Canadian business law firms. The Ottawa market seems to have taken a wait-and-see approach in anticipation of the federal election in 2015 which will shed more light on the Government's intensions to lease or return more space to the market.5. 101st Street NW, Edmonton, AB, $46.71 p.s.fEdmonton's average asking rent lowered from $48.19 p.s.f. in 2013 to $46.71 p.s.f. this year. Despite a drop in the average price from last year, 101st Street NW is expected to remain the most expensive street in Edmonton with the recent commitment to build the Arena district, a large-scale mixed-use project incorporating the city's new NHL arena which will revitalize some of the most important corners on 101st Street NW.
6. René-Lévesque W, Montreal, QC, $44.28 p.s.f.René-Lévesque W held 6th place. The average gross rent on the street has not changed significantly year-over-year but we have seen the total value of tenant inducement packages nearly double. The most expensive building on the street (1250 René-Lévesque W) has seen some downward pressure on its net rent (between $2.00 and $4.00 p.s.f.) due to 170,000 square feet of vacant space left behind by Heenan Blaikie.7. Upper Water Street, Halifax, NS, $36.42 p.s.f.Upper Water Street has maintained 7th, despite its average asking rent dropping $0.23 p.s.f. from $36.65 p.s.f. last year to $36.42 p.s.f. this year. Upper Water Street continues to command the highest rents in Halifax, however new construction coming on-stream is expected to put downward pressure on rents in existing office buildings.8. Portage Avenue, Winnipeg, MB, $35.67 p.s.f.Portage Avenue held strong on 8th place, with its average rent increasing $0.50 over last year – from $35.17 p.s.f. to $35.67 p.s.f. The Class A market remains tight and is expected to remain so through 2015.9. Laurier Boulevard, Québec City, QC, $27.50 p.s.f.Laurier Boulevard held its ninth place position; with the average office rent dropping from $28.14 p.s.f. in 2013 to $27.50 this year. There has been no notable increase in the average gross rent and vacancy on the street remains low (5.2 percent) in relation to the rest of the market (7.8 percent).
2013 City Ranking
JLL is Canada's fastest growing commercial real estate firm. JLL has two offices in Toronto, with the headquarters located downtown. The firm also operates in, Mississauga, Montreal, Ottawa, Vancouver, Calgary and Edmonton. JLL manages more than 50 million square feet of facilities across Canada. The firm offers tenant and landlord representation, project and development services, investment sales, advisory and appraisal services, debt capital markets and integrated facilities management services to owners and tenants in Canada.
JLL (NYSE: JLL) is a professional services and investment management firm offering specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. With annual fee revenue of $4.0 billion and gross revenue of $4.5 billion, JLL has more than 200 corporate offices, operates in 75 countries and has a global workforce of approximately 53,000. On behalf of its clients, the firm provides management and real estate outsourcing services for a property portfolio of 3.0 billion square feet, or 280.0 million square meters, and completed $99.0 billion in sales, acquisitions and finance transactions in 2013. Its investment management business, LaSalle Investment Management, has $53.0 billion of real estate assets under management. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit www.jll.com.
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